GBPCAD - 240 - Could do with a bit of retracement
Trade Alert
Certainly, GBPCAD continues to look weak after yesterday's selling, but there could be a small light in the end of the tunnel for some more retracement to the upside. But that is, of course, if the pair manages to overcome the 1.6805 zone. If it struggles to do that, then we could see the reversal to the downside earlier.
Downside:
The first scenario is if we actually see more correction, maybe even going towards the 1.6925 area and then dropping back down.
The second scenario is a reversal from the 1.6805 straight away and then dropping back down to break the 1.6720 line.
Upside:
We will take a more conservative approach and wait, until we see a move back above the 1.6960 area, before we get comfortable with the upside again, which still could be limited, due to the short-term downside resistance line, taken from the peak of the 11th of October.
Don't forget your SL.
Certainly, GBPCAD continues to look weak after yesterday's selling, but there could be a small light in the end of the tunnel for some more retracement to the upside. But that is, of course, if the pair manages to overcome the 1.6805 zone. If it struggles to do that, then we could see the reversal to the downside earlier.
Downside:
The first scenario is if we actually see more correction, maybe even going towards the 1.6925 area and then dropping back down.
The second scenario is a reversal from the 1.6805 straight away and then dropping back down to break the 1.6720 line.
Upside:
We will take a more conservative approach and wait, until we see a move back above the 1.6960 area, before we get comfortable with the upside again, which still could be limited, due to the short-term downside resistance line, taken from the peak of the 11th of October.
Don't forget your SL.